Brokerages chose Andhra Pradesh-linked stocks such as NCC, KNR Construction and PNC Infratech as top picks in the infrastructure segment after the central government announced financial measure for the state in the budget.
What Happened: In the budget, Finance Minister Nirmala Sitharaman allocated ₹15,000 crore to Andhra Pradesh state for the current financial year for the development of infrastructure in the state.
This includes the development of the capital city Amaravati, the developing Vishakhapatnam-Chennai and Hyderabad-Bengaluru Economic corridors, Polavaram Irrigation Project in Andhra Pradesh. Grants have also been allocated to develop backward regions of Rayalaseema, Prakasam and North Coastal Andhra Pradesh.
See Also: Reliance Industries Gets Green Light From US To Restart Venezuelan Crude Imports: Report
Axis Securities said the financial projects are positive for road construction companies and picked PNC Infratech, GR Infra, HG Infra, KNR Construction, J Kumar Infra and Ahluwalia Contract. NCC is a preferred pick for the broker that is not in their coverage.
Similarly Nuvama Institutional Equities also said the higher capital expenditure in Andhra Pradesh will benefit infrastructure companies such as NCC and KNR Construction.
Price Action: Shares of NCC gained 6.71% on Tuesday following the budget, though it dropped 0.1% to ₹337.40 on Wednesday.
Shares of KNR Construction fell 1.31% on Tuesday but were 5.83% up at ₹379.35 on Wednesday.
Shares of PNC Infratech closed 0.67% higher on Tuesday and was up 0.94% on Wednesday at ₹516.95.
Shares of GR Infra Projects gained 2.73% on budget day and were down 0.07% at ₹1,722.50 on Wednesday.
Read Next: Why This Analyst Thinks Titan, Kalyan Jewellers Will Continue To Glitter After Budget Push
Don't miss a beat on the share market. Get real-time updates on top stock movers and trading ideas on Benzinga India Telegram channel.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.